Finance Ministry drafts bill to cap guaranteed deposit amount in banks

Pursuant to a new European Union guideline, the Finance Ministry has announced that it has drafted an amendment to the law on protection of deposits in banks, which caps the guaranteed amount at €100,000 – with effect from December 31, 2010, the TASR newswire reported. The bill also would cut the three-month deadline for the repayment of unavailable deposits in banks declared insolvent to 20 working days, which in emergencies can be extended by 10 days – instead of nine months as is the case currently. According to the European Union, such a long repayment period flies in the face of the need to maintain the trust of depositors.

Pursuant to a new European Union guideline, the Finance Ministry has announced that it has drafted an amendment to the law on protection of deposits in banks, which caps the guaranteed amount at €100,000 – with effect from December 31, 2010, the TASR newswire reported.

The bill also would cut the three-month deadline for the repayment of unavailable deposits in banks declared insolvent to 20 working days, which in emergencies can be extended by 10 days – instead of nine months as is the case currently. According to the European Union, such a long repayment period flies in the face of the need to maintain the trust of depositors.

Slovakia’s cabinet has yet to formally discuss the bill, TASR wrote on September 20.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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